Brazilian cruise market suffers hard as economy slows down
The Brazilian cruise market is suffering hard in tandem with slowdown of the country?s economy that until recently fired on all cylinders on raw materials boom.
The? number of cruise vessels expected to operate from Brazilian ports will fall to 11 in the 2013/14 season, a sharp reduction from 15 in 2012/13, 17 ships in 2011/12? and 20 vessels in the 2010/11 season, says CLIA Abremar, the cruise industry organisation in South America?s largest country.
The latest reduction in deployments came last month, when Iberocruceros said its Grand Mistral would not operate from Brazilian ports in the coming Austral summer season; instead the vessel would be transferred to the Costa Crociere group, another member of the Carnival Corp & plc group.
In August, Finance Minister Guido Mantega reduced 2013 growth targets to 2.5% from an already reduced 3.0%, and for 2014 down to 4.0% from 4.5%. The country?s central bank raised its key interest rate to 9% from 8.5%, also last month, to fight inflation that currently runs at 6.1% per annum. The real lost a fight of its value against the dollar from the beginning of the year to the end of August as the country?s raw materials export led economy cooled, the BBC reports.
Most of the cruises from Brazilian ports are between three and nine nights in duration and there will be 27 departures fewer in the coming season than a year before. By contrast, the Argentine market is expected to grow by a quarter in the coming season and MSC Poesia and Grand Celebreation will only operate from Buenos Aires during their forthcoming South America seasons, CLIA Abremar said.